, and I have announced to the President of the United States the terms upon which exchanges can alone be made.
In the meantime I have placed in the penitentiary and put at hard work Captain Gramm and Lieut. Wade, who are to remain at hard work as hostages for Capt. Duskey and Lieut. Vannor now in confinement in the District penitentiary at Washington city.
I have also placed in solitary confinement Capt. Thos Damron and Lieut. Wilson Damron, and privates John W. Howe, Isaac Goble, David V. Auxier, Samuel Pace, and Wm. S. Dille, who are held as host ages for the gallant Zarvona, who has been in confinement since July 1861 and who has been treated (if the half I hear is true) with a brutality unparalleled in the history of civilized warfare.
Five others deserters from the Confederate service, have been turned over for trial.
The other prisoners are confined and treated as prisoners of war, not to be released (with my consent) until some general rule shall be adopted in regard t